EU capital rules remain on tight deadline

LONDON – European Union (EU) plans for implementing the complex Basel II bank safety rules remain on a very tight schedule, but the issue today of a EU progress report is a positive step, officials at European banking organisations said today.

Some European bankers fear that major European banks could be put a competitive disadvantage to North American, Japanese and Swiss rivals if the Cad 3 timetable lags far behind the Basel II schedule.

The officials were commenting on the European Commission’s working document on its plans for new capital adequacy rules – commonly known as Cad 3 – which are closely modelled in most respects on the risk-based Basel II bank capital accord proposed by global banking regulators.

The commission said